raise business standards, corporate compliance and to contribute to the goals of good governance and economic development. PACI principles are the product of a task force that included the member companies of the World Economic Forum in partnership with Transparency International and the Basel Institute on Governance. The World Economic Forum acts as a neutral convener.[1] .
Since they were issued in 2004, the PACI Principles for Countering Bribery have set up international companies across industries with practical guidance and a reference point for developing their own implementation policies and procedures for countering bribery.[2]
In short, the aim of the PACI Principles is to assist enterprises to:
eliminate bribery;
demonstrate their commitment to countering bribery;
make a positive contribution to improving business standards of integrity, transparency and accountability wherever they operate.[3]
The PACI Principles are voluntary, they commit signatory companies to two basic actions: a zero tolerance policy towards bribery and an effective programme to counter bribery and ensure its implementation.
The principles deal particularly with aspects of definitions such as "gifts"; "contributions" and "facilitation payments"; and the stance against third parties in the supply chain - such as due-diligence issues[4] .
The PACI Principles identify additional general guidelines for developing and maintaining an effective programme. These call for:
1) Reasonable detail and clarity in the programme 2) Tailoring to reflect a company’s unique needs and circumstances 3) Consistency with applicable laws in jurisdictions in which a company does business 4) Involvement of employees in the implementation process 5) Monitoring for emerging industry practices and other relevant developments [5]
Overall, the Partnering Against Corruption -Principles for Countering Bribery reflect an common understanding by the corporate sector that corruption and bribery are corrosive of economic progress and good governance.
Critique
There is an ongoing discussion about the effectiveness of PACI in combating corruption and bribery, there is little empirical support about their effects.[6]
A number of companies that participated in the taskforce that drafted the principles have not signed the principles, these are Chevron Texaco, Japan National Oil Corporation, Saudi Aramco and Morganti Group[7]
The number of signatories remain few. Some high-risk sectors, such as the pharmaceutical industry, have very limited or no signatories to the principles - pharma has only one signatory member, UK-based Hikma Pharmaceuticals[8] . Only one Finnish company, Pöyry Plc, has signed the principles.
Overview
The Partnering Against Corruption (PACI) - Principles for Countering Bribery is a multistakeholder initiative established toTable of Contents
raise business standards, corporate compliance and to contribute to the goals of good governance and economic development. PACI principles are the product of a task force that included the member companies of the World Economic Forum in partnership with Transparency International and the Basel Institute on Governance. The World Economic Forum acts as a neutral convener.[1] .
Since they were issued in 2004, the PACI Principles for Countering Bribery have set up international companies across industries with practical guidance and a reference point for developing their own implementation policies and procedures for countering bribery.[2]
In short, the aim of the PACI Principles is to assist enterprises to:
The PACI Principles are voluntary, they commit signatory companies to two basic actions: a zero tolerance policy towards bribery and an effective programme to counter bribery and ensure its implementation.
The principles deal particularly with aspects of definitions such as "gifts"; "contributions" and "facilitation payments"; and the stance against third parties in the supply chain - such as due-diligence issues[4] .
The PACI Principles identify additional general guidelines for developing and maintaining an effective programme. These call for:
1) Reasonable detail and clarity in the programme
2) Tailoring to reflect a company’s unique needs and circumstances
3) Consistency with applicable laws in jurisdictions in which a company does business
4) Involvement of employees in the implementation process
5) Monitoring for emerging industry practices and other relevant developments [5]
Overall, the Partnering Against Corruption -Principles for Countering Bribery reflect an common understanding by the corporate sector that corruption and bribery are corrosive of economic progress and good governance.
Critique
There is an ongoing discussion about the effectiveness of PACI in combating corruption and bribery, there is little empirical support about their effects.[6]A number of companies that participated in the taskforce that drafted the principles have not signed the principles, these are Chevron Texaco, Japan National Oil Corporation, Saudi Aramco and Morganti Group[7]
The number of signatories remain few. Some high-risk sectors, such as the pharmaceutical industry, have very limited or no signatories to the principles - pharma has only one signatory member, UK-based Hikma Pharmaceuticals[8] . Only one Finnish company, Pöyry Plc, has signed the principles.
Pieth, M. (2007). Multi-stakeholder initiatives to combat money laundering and bribery. Law and legalization in transnational relations, 81-100.
http://info.worldbank.org/etools/acportal/docs%5CT2_bizPartAgnstCrrpt.pdf
Pieth, M. (2007). Multi-stakeholder initiatives to combat money laundering and bribery. Law and legalization in transnational relations, 81-100.
http://www.falck.it/pdf/PACI_Principles_Summary.pdf
Adeyeye, A. (2011). Universal standards in CSR: are we prepared?. Corporate Governance, 11(1), 107-119.
Adeyeye, A. (2011). Universal standards in CSR: are we prepared?. Corporate Governance, 11(1), 107-119.
http://www3.weforum.org/docs/IP/2014/PACI/WEF_PACI_Members_2014.pdf